HyperDAO: The Importance of DAO Governance
As the global scale of the DeFi and NFT markets continue to grow, communities around the world are scrambling to understand how to best manage decentralized protocols. DeFi and NFT-based communities have faced a variety of governance issues over the years, mostly in terms of managing collective decisions to optimize operations, as well as how funds are utilized.
As an early adopter of the DAO (Decentralized Autonomous Organization) operational model, HyperDAO hopes to significantly reduce the coordination costs required by adopting community governance. This can be done through smart contracts, which enable users to manage the platform together in a collaborative manner.
HyperDAO aims to bring together users to work towards a common goal and benefit in a decentralized manner, without any leaders or authoritative figures. Everything would be managed through smart contracts, upholding the principle of “code is law”. Many new decentralized protocols are being built using a similar structure, and so far, much of HyperDAO’s activities have taken place in an open and transparent manner. We believe that DAOs play a key role in future global development. This governance model has many uses and can be implemented in businesses, social groups, and charities.
DAO Governance Model
HyperDAO is a multi-chain decentralized platform, and it is among the earliest adopters of DAO for community governance. After creating its “Charity Protocol”, HyperDAO has allowed various non-profits, charities, universities, individuals, faith-based, and other mission-oriented organizations to conduct charitable activities through the platform. HyperDAO aims to help the underprivileged and those in need, providing them with the necessary support to prosper and grow.
Details of the Charity Protocol:
1. Data tracking — Transaction data is made public and transparent so that donors can clearly understand how their donations are used. This allows them to have more confidence when participating in charity activities.
2. Quality control — HyperDAO will conduct extensive checks on each project to determine their validity and verify the team’s background, so that donors can participate in high quality projects that have noble causes.
3. Determining how funds are used — HyperDAO allows donors to vote to select the charities they would like to work with.
The goal of HyperDAO’s “Charity Protocol” is to allow donors, regardless of the size of their donation, to see exactly how their donations are put to good use in supporting the community. Any user can also use the protocol to promote their project, and members can decide whether to support it by voting.